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ONDC: The Game Changer

ONDC: The Game Changer  

source:News9


 Image source: Pinterest

The Indian e-commerce market is projected to reach USD 188 billion by 2025 and USD 350 billion by 2030. However, Amazon and Flipkart currently dominate with over 60% market share. In response, the Indian Government introduced ONDC (Open Network for Digital Commerce) in 2022 to compete with these giants.

ONDC aims to establish a presence in the Indian e-commerce market by targeting buyers in both big cities and rural areas, offering significant discounts to encourage their participation. It also charges sellers a modest 3% commission, in contrast to competitors like Zomato and Swiggy, which charge 25%.

Digital payments in India are set to triple from 300 crores in November 2019 to 1000 crores by January 2023. To join ONDC, local stores must have a digital payment system. The platform is being developed by a network of members with various specialties, including logistics.

ONDC is facing initial challenges due to local stores' digital connectivity issues and the impact of excessive discounts on cash flow. However, its security is assured as data transfer occurs directly between buyers and sellers without the platform's involvement.

In conclusion, ONDC has the potential to disrupt the e-commerce sector if it can compete with established giants and reach smaller cities.

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